To reduce the risks inherent in your business operations, it is imperative to implement a risk management program. The plan helps to identify the risks and create procedures to reduce those risks.
Risk Management Concerns
As a business owner, you face many challenges in implementing risk management. Advancements in technology continue to complicate the situation, making cyber risks one of the top concerns. Other issues include:
- Damage to the company’s reputation
- Economic hardship
- Employee concerns
- Client liability
- Increased competition
Implementation of a Risk Management Program
Once you have identified the top roadblocks, it’s time to begin your implementation program.
- Arrange a team consisting of employees from each department within the company to ensure you have adequate representation.
- Instruct each worker to identify the risks that are present in their work area.
- As a team, prioritize each risk with a numbering system that quantifies the severity and frequency of each risk so that the most critical issues are addressed first.
- Develop an implementation program, including the human and other resources necessary to tackle the problem.
- Establish guidelines with due dates for final implementation.
Continue to review the corrective actions until you establish a comprehensive improvement plan. Make sure all affected employees are trained on the procedures and audit the program for continual improvement.
Implementing a risk management program will reduce costs and keep your employees safe.